The tech industry is experiencing a wave of layoffs that began shaking the sector in 2022. During this period, major companies like Amazon, Alphabet, Microsoft, and Meta initiated significant job cuts, laying off thousands of employees. This trend only accelerated in 2023, with layoffs increasing by 59% compared to the previous year. According to data from Layoffs.fyi, a staggering 262,915 employees were let go across various tech firms in 2023. The primary drivers behind these layoffs included economic downturns, overhiring during the pandemic, and strategic restructuring aimed at maintaining financial stability.
Despite the large-scale layoffs in 2023, the tech industry showed no signs of slowing down job cuts in 2024. Data from Layoffs.fyi indicates that 98,834 employees were laid off by 337 tech companies in just the first half of 2024. Companies continue to focus on reducing operational costs, which has led to further job cuts. As IT employees already grapple with the stress of potential layoffs, a new and more insidious trend is emerging—silent layoffs.
The Emergence of Silent Layoffs
In the Indian IT and IT-enabled services (ITeS) sector, the practice of silent layoffs is on the rise. This involves subtly pressuring employees to leave without making the layoffs public. The All India IT & ITeS Employees’ Union (AIITEU) reported that approximately 20,000 technology professionals were affected by these unannounced layoffs in 2023, with the actual numbers likely being even higher. Silent layoffs typically involve giving employees a 30-day period to find a new position within the company. Failure to secure a new role within this period usually results in termination. According to AIITEU, this method is widespread and allows companies to quietly reduce their workforce, avoiding public scrutiny and potential backlash.
The Scale of Silent Layoffs in 2024
Reports indicate that between 2,000 and 3,000 employees were silently laid off in the first five months of 2024 by leading Indian IT service companies. The Nascent Information Technology Employees Senate (NITES) has highlighted various ways companies are implementing these layoffs. NITES President Harpreet Singh Saluja noted that employees who resist silent layoffs face immediate termination. Once an employee is marked as “terminated” in their relieving letter, it becomes increasingly difficult for them to find another job.
Silent Layoffs vs. Quiet Firing
While silent layoffs and quiet firing both involve pressuring employees to leave, they differ in execution. Silent layoffs typically provide employees with a notice period, giving them time to transition to a new role. Quiet firing, however, involves making an employee’s role increasingly undesirable—by overloading them with tasks, assigning insignificant duties, or giving poor performance reviews—until they are compelled to resign.
Despite these differences, silent layoffs have a significant impact on employees. Many of those affected are placed on performance improvement plans (PIPs), where they must quickly prove their capability to avoid termination. This often leads to increased stress and job insecurity, particularly for experienced and higher-paid employees, who are more vulnerable to being targeted as companies seek to reduce costs.
The Broader Implications
As the tech industry continues to navigate these turbulent times, the rise of silent layoffs poses a significant challenge for employees. While companies may view these strategies as necessary for survival, the impact on employees and their careers cannot be understated. As the year progresses, it remains to be seen how the tech industry will address these issues and what measures will be taken to support its workforce during such challenging times.
